Digital asset bank Sygnum gets in-principle approval from MAS for major payment institution licence

June 16, 2023

By Anjali Kochhar

Sygnum, a fintech start-up backed by Singaporean telco Singtel, has received in-principle approval from the Monetary Authority of Singapore (MAS) to operate as a major payment institution, according to a statement. This approval opens the doors for Sygnum to expand its services in Singapore, including the provision of a regulated cryptocurrency brokerage service.

According to Sygnum, the in-principle approval from the financial regulator paves the way for the activation of a brokerage platform that will offer a fiat digital asset gateway and trade execution for various cryptocurrencies. Users can anticipate real-time balance updates, fast trade settlements, deep liquidity, and competitive spreads on the platform.

The newly obtained major payment institution license marks an expansion of Sygnum’s regulated activities, following the extension of its three-part capital markets services license in 2022. This extension allowed Sygnum Singapore to offer corporate finance advisory, capital market products, as well as asset and security token custodial services.

Mr. Gerald Goh, co-founder and Singapore CEO of Sygnum, expressed that the in-principle approval reinforces the company’s market position in Singapore and Southeast Asia. He praised Singapore’s progressive and robust regulatory framework, which provides clarity and confidence for investors looking to invest in digital assets and future finance with complete trust.

Sygnum refers to itself as “the world’s first digital asset bank” and is licensed in Switzerland while being regulated in Abu Dhabi and Luxembourg in addition to Singapore. The company aims to empower professional and institutional investors, banks, corporates, and distributed ledger technology foundations to invest in the digital asset economy with complete trust.

Sygnum’s initial entry into the Singapore market was facilitated by the country’s first capital markets services license granted in 2019. This early-mover advantage allowed the company to establish a prominent position in the market.

With the recent in-principle approval from MAS, Sygnum is poised to further enhance its services and offerings in the digital asset space. By expanding its Singapore operations to include a regulated crypto brokerage service, the company can cater to the growing demand for cryptocurrency investment and provide investors with a secure and trustworthy platform.

About the author

Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.

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